Financial Struggles News

Why did Nordstrom fail in Canada?

Why did Nordstrom fail in Canada?

Nordstrom has decided to shutter its small base of stores in Canada, making it the latest U.S.-based retailer to face a chilly reception after expanding up north, joining previous U.S.-based retailers like Lowe’s and Target.

Will Bed Bath & Beyond’s meme stock move transform its fortunes?

Bed Bath & Beyond is saved, at least for the time being. The retailer issued a press release announcing a deal with Hudson Bay Capital Management that will provide funds for a public offering of its stock. Did Bed Bath & Beyond have any choice but to lean into its meme stock status to obtain funds from Hudson Bay Capital Management after banks took a pass?

Will bankruptcy enable Party City to succeed for years to come?

Will bankruptcy enable Party City to succeed for years to come?

Party City Holdco, the parent company of Party City, on Tuesday filed for Chapter 11 bankruptcy protection. The retailer also said it had entered into an agreement with creditors.  What are the biggest challenges that Party City leadership will face in coming months as it goes through the bankruptcy process?

Is Bed Bath & Beyond nearing the end of its line?

Is Bed Bath & Beyond nearing the end of the line?

Bed Bath & Beyond (BBBY) will file for Chapter 11 bankruptcy protection within a matter of weeks, according to reports from numerous news outlets. Will the current plan in place under Sue Gove enable Bed Bath & Beyond to avoid falling into bankruptcy?

If DTC is broken, is CTC the fix?

If DTC is broken, is CTC the fix?

DTC retail is not getting the positive buzz it did a few years ago — far from it. In fact, downturns among major DTC brands have some industry experts thinking that the model might be on its way out. Do you see CTC (connect-to-consumer) as being meaningfully different from DTC and will embracing different pathways to the customer give brands an advantage?

RIP Sears Hometown

RIP Sears Hometown

Put a fork in it. Sears Hometown is truly done. The company, made up of franchisees currently operating about 100 small stores selling appliances, hardware, tools, and lawn and garden equipment, filed for Chapter 11 bankruptcy protection on Monday. What is your take on the demise of Sears Hometown?

Things go from bad to worse at Bed Bath & Beyond

Things go from bad to worse at Bed Bath & Beyond

The death of Bed Bath & Beyond chief financial officer Gustavo Arnal last Friday has shocked the company and the retailing world. What do you do now if you are Bed Bath & Beyond’s board of directors?

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Will Bed Bath & Beyond’s new turnaround plan work any better than the previous one?

Bed Bath & Beyond yesterday went public with the struggling retailer’s new plan to get its business on solid footing. What are the key challenges that Bed Bath & Beyond faces at this moment in time?

Supply chain woes just cost Bed Bath & Beyond $100M in sales

What worked at Target didn’t work for Mark Tritton at Bed Bath & Beyond

The news came today that Mark Tritton is out as president, CEO and a board member of Bed Bath & Beyond. What went wrong and right during Mark Tritton’s tenure at Bed Bath & Beyond?

Ultra-fast delivery may burn out or fade away

Ultra-fast delivery may burn out or fade away

Ultra-fast delivery startups that have proliferated throughout the U.S. and abroad might have gotten ahead of themselves, according to a new study that finds that demand for the service is just not that big. vDo findings like those in the Stor.ai survey change how retailers should look at their investments in, or competition from, ultra-fast grocery delivery?

Should retail leases include clauses covering future shutdowns?

Should retail leases include clauses covering future shutdowns?

Retailers are trying to negotiate terms like rent abatement or rent deferral in case of a new forced closure, according to a new report. How important is it that retailers negotiate clauses pertaining to potential future government shutdowns into their leases?

Wayfair’s earnings miss may portend trouble for fellow ‘disruptor’ brands

Wayfair’s earnings miss may portend trouble for fellow ‘disruptor’ brands

Last Thursday, shares of Wayfair lost 26 percent of their value and are now off about 75 percent from their high last year. Many other online shopping darlings have likewise taken massive hits to their valuations. In what ways are Wayfair’s problems similar to and different than other digitally native vertical brands?

Would a Peloton acquisition make sense for Amazon or Nike?

Would a Peloton acquisition make sense for Amazon or Nike?

Amazon and Nike are reportedly exploring separate bids for Peloton, the beleaguered leader in internet-connected bikes and treadmills.  Would a Peloton purchase make more sense for Amazon, Nike or neither?

Can a financially stable, digitally-enabled Neiman Marcus make a comeback?

Can a financially stable, digitally-enabled Neiman Marcus make a comeback?

Neiman Marcus is expressing confidence in improving its prospects as it has wiped away debt that weighed it down for the past 15 years, begun making strategic investments in digital tech companies and opened the doors to its namesake department stores. Is Neiman Marcus Group on the right financial and strategic path to establish consumer relevancy and achieve sustainable success?

Did the pandemic fundamentally shift retailer/vendor relationships?

Did the pandemic fundamentally shift retailer/vendor relationships?

The novel coronavirus pandemic brought about changes to how retailers and consumer brands conducted business with one another. Just how many of those changes will stick remains to be seen.  How have retailer and vendor relationships shifted since the pandemic hit last year?

Simon says J.C. Penney is ready to become a 21st century retailer

Simon says J.C. Penney is ready to become a 21st century retailer

J.C. Penney is moving in the right direction, but it is still a work in progress. That’s the assessment of David Simon, CEO of Simon Property Group, the co-owner of the department store chain, as told to analysts on an earnings call this week. Do you agree with David Simon that J.C. Penney is now in a position to focus on growing its business?

Can a celeb endorsement fuel a Payless reboot?

Can a celeb endorsement fuel a Payless reboot?

After declaring bankruptcy and closing its operations, Payless is returning to the world of brick-and-mortar retail and may be leveraging a celebrity endorsement as it tries to get the business off the ground again. What types of moves do you see Payless needing in order to reestablish itself in the marketplace?

Are short-term leases here to stay?

Are short-term leases here to stay?

Gaining leverage due to elevated vacancy rates amid the pandemic, retailers are asking for and increasingly receiving short-term leases. The change carries short-term benefits and long-term risks for merchants.  Do you see shorter and more flexible leases for retailers continuing after the pandemic subsides?

Activist investors attempt takeover of Kohl’s board of directors

Activist investors attempt takeover of Kohl’s board of directors

A group of activist investors that control 9.5 percent of Kohl’s stock want to see big changes from the retailer, beginning with its board of directors.  Do you agree with activist investors that Kohl’s is underperforming its competition?

The retail apocalypse didn’t happen last year...despite the coverage

The retail apocalypse didn’t happen last year, despite the coverage

If there was a retailing equivalent of a swear jar (put in a dollar for every curse word) then it should be used for the phrase “retail apocalypse.” Do we place too much emphasis on what might happen and less accountability on what did when it comes to retail predictions?

GameStop hires Amazon, Chewy and QVC vets to transform its business

GameStop hires Amazon, Chewy and QVC vets to transform its business

GameStop isn’t ready to give up on itself yet as evidenced by new hires with strong professional pedigrees. Are you encouraged about GameStop’s prospects based on its apparent change in its strategic focus and new additions to its board and leadership team?

Will vaccine reluctant Americans slow the retail comeback from COVID-19?

Will vaccine reluctant Americans slow the retail comeback from COVID-19?

Getting back to some semblance of pre-pandemic normalcy in the U.S. is entirely dependent on the nation’s ability to get a handle on the coronavirus. Do you think currently reluctant Americans will get a COVID-19 vaccine when it is made available or will they continue to hold out, keeping the nation from reaching herd immunity?

Does a Staples/Office Depot merger now make more sense?

Does a Staples/Office Depot merger now make more sense?

Staples for the third time is seeking to acquire rival Office Depot as the accelerated shift to online shopping and work-from-home culture recasts the opportunity in office supply retail. Does a Staples and Office Depot merger make more sense in a post-COVID environment?

Will store closings in 2021 beat last year’s record total?

Will store closings in 2021 beat last year’s record total?

COVID-19 accelerated the rationalization of retail’s over-stored environment and the pace of closures isn’t expected to slow. Will the pressure for retail chains to close stores increase or lessen in 2021?

Curbside cocktails anyone?

Curbside cocktails anyone?

In time for New Year’s Eve, North Carolina and Oregon have joined at least 30 other states in allowing restaurants and bars to sell mixed drinks for offsite consumption. Do you see more pros than cons in allowing sales of to-go cocktails?

Winter cold kills last remaining option for many restaurants

Winter cold kills last remaining option for many restaurants

The National Restaurant Association recently said the restaurant industry has likely fallen into a double dip recession. The deteriorating business condition was blamed on the end of the outdoor dining season in many parts of the country. Do you have any creative ideas for struggling restaurants trying to survive the winter of 2020-21?

Should landlords get a cut of online sales?

Should landlords get a cut of online sales?

Retailers are pushing property owners for more flexible lease terms due to the extraordinary disruption caused by the pandemic. One of the tradeoffs landlords are seeking in return is rent as a percent of online sales. Would including a share of online sales in store leases make sense?

Are retailers cutting their way to profitability or slowly bleeding to death?

Are retailers cutting their way to profitability or slowly bleeding to death?

If you’ve been around the retail industry for any amount of time, you’ve no doubt been a part of at least one conversation on how there are just too many stores for the market in the U.S. Do you think retailers that announce large numbers of store closings are often simply putting off their ultimate demise?

Did Burger King just ask consumers to buy a Big Mac?

Did Burger King just ask consumers to buy a Big Mac?

Burger King in the UK is asking customers to support its fast-food rivals. What is your reaction to the campaign to encourage business for fast-food restaurants, including rival chains like McDonald’s?

Will J.C. Penney be renewed under new ownership?

Will J.C. Penney be renewed under new ownership?

J.C. Penney has entered into a purchase agreement with Brookfield Property Partners and Simon Property Group and a group of first lien lenders to acquire the company’s assets. Do you think J.C. Penney is coming out of Chapter 11 in a stronger operating position to put CEO Jill Soltau’s plan in place?

Retailers say the new stimulus plan can’t wait until after the election

Retailers say the new stimulus plan can’t wait until after the election

President Trump announced via Twitter yesterday that he was pulling the plug on negotiations over a new stimulus bill to help struggling American citizens and businesses hit hard by the coronavirus pandemic until after the election.  Do you agree that quick action is needed on a new stimulus plan or do you think it can wait until after the election?

Neiman Marcus begins its new life outside of bankruptcy

Neiman Marcus begins its new life outside of bankruptcy

Neiman Marcus emerged from bankruptcy on September 25 with plans to sharpen its focus on full-price selling and perfect digital clienteling. However, the exit begins with significant reductions in its in-store workforce to adjust for lean sales expectations in wake of COVID-19. How would you assess the strengths and weaknesses of Neiman Marcus?

Will others follow Mall of America and provide free space for struggling moms and pops?

Will others follow Mall of America and provide free space for struggling moms and pops?

Mall of America is donating temporary space to several local businesses hit hard by the COVID-19 pandemic and civil unrest. Do you see Mall of America gaining more than good press from Community Commons?

J.C. Penney rescued. Will it now find success and save the mall, too?

J.C. Penney rescued. Will it now find success and save the mall, too?

J.C. Penney announced that it has reached an agreement in principle with two of its landlords on a near eleventh-hour deal. Do you think J.C. Penney will be in a more secure financial, if not competitive, position to run its business once the deal with Simon and Brookfield is complete?

Does J.C. Penney still have a future?

Does J.C. Penney still have a future?

J.C. Penney has nine days to work out a deal with lenders to acquire the business or it will be forced to close significantly more stores than it planned. Would a debt for equity swap with J.C. Penney’s lenders put the chain in a stronger position going forward than a lowball deal from other bidders?

Should restaurants charge a pandemic fee?

Should restaurants charge a pandemic fee?

Bonnie Brae Tavern in Denver has joined a number of other restaurants around the U.S. adding a “COVID-19” fee to its bills. The charge is two dollars for any purchase over $10. Would you recommend restaurants charge a COVID-19 fee to offset rising sanitation, food and other costs tied to the pandemic?

Will Kohl’s gain from other retailers’ pain?

Will Kohl’s gain from other retailers’ pain?

If these were normal times and you were just looking at the numbers, you wouldn’t think Kohl’s is in a great place right now. Do you agree that Kohl’s is in a good position to benefit from the changing consumer trends and bankruptcies that have affected retail during the pandemic?

Can Payless avoid past mistakes with its new comeback effort?

Can Payless avoid past mistakes with its new comeback effort?

Payless has been in and out of bankruptcy for years, having filed for court protection in 2017 and again last year when it announced it was closing all its stores in the U.S. and its e-commerce site.  Does Payless’ new plan to remake its U.S. business sound like it could work?

Can airport retailers weather the turbulence?

Can airport retailers weather the turbulence?

With travel at historical lows due to the novel coronavirus pandemic, airport retailers that were thriving just a few months ago are now having trouble getting people in the door. What fallout do you expect of COVID-19 for airport retail in the short and long term, and what can retailers do to mitigate the losses they face?

Should retailers push Congress for a more robust stimulus plan?

Should retailers push Congress for a more robust stimulus plan?

As Congress struggles to find common ground on a second round of fiscal stimulus, it’s time to review the impact of the CARES Act legislation. How effective do you think CARES was in helping American consumers and retailers deal with the initial impact of the coronavirus pandemic?

Simon sees a big and profitable upside in acquiring retail tenants

Simon sees a big and profitable upside in acquiring retail tenants

Simon Property Group is looking for opportunities to acquire once-successful retailers on the cheap as the effects of the novel coronavirus pandemic continue to force a record number of chains (AKA tenants) to file for bankruptcy. What do you think about retailers and other companies making investments outside of their core businesses?

Will a smaller Macy’s be a better Macy’s?

Will a smaller Macy’s be a better Macy’s?

Macy’s, Inc. announced yesterday plans to cut 3,900 corporate jobs, three percent of its total workforce, in a move to reduce costs by $365 million this year and $630 million annually going forward. Do you think a smaller Macy’s will be a better retailer than it was before?

Who will come to J.C. Penney’s rescue?

Who will come to J.C. Penney’s rescue?

J.C. Penney is facing a deadline that it may not be able to meet. The department store operator, which filed for bankruptcy in May, is at risk of running out of cash by July 15 if something dramatic doesn’t happen. Which of the parties reportedly interested in acquiring J.C. Penney would make the best fit for the retailer?

How much pent up shopping demand is there?

How much pent up shopping demand is there?

When retail stores closed to customers in March, the hope was that Americans would come back and make up for lost time and sales when states began to let merchants reopen. What are your expectations for retail sales as stores reopen to the public?

Has Macy’s secured its future success with its new financing deal?

Has Macy’s secured its future success with its new financing deal?

Macy’s announced that it has negotiated $3.15 billion in asset-based credit in addition to a previously announced $1.3 billion bond offering. Will the combination of new financing along with Macy’s three-year Polaris plan enable the retailer to emerge stronger down the road than it was before the coronavirus pandemic hit?

Do retailers need ‘trickle up economics’ to beat COVID-19?

Do retailers need ‘trickle up economics’ to beat COVID-19?

Though retailers like Home Depot, Lowe’s and Target have seen a boost in sales as COVID-19 stimulus checks were cashed, much of the money went straight to paying mortgages, rent and other bills. Do you agree that retailers need some “trickle up economics” to rebound from the damage caused by the pandemic?

Is Amazon about to buy J.C. Penney?

Is Amazon about to buy J.C. Penney?

Amazon.com has wasted no time in pursuing a possible acquisition of all or some of J.C. Penney’s business, according to news initially broken by WWD. Would a purchase of all or part of J.C. Penney by Amazon make sense for either party?

What's J.C. Penney’s next move?

What’s J.C. Penney’s next move?

J.C. Penney entered bankruptcy proceedings with a sense of urgency, setting a deadline of July 15 to secure support from lenders on a reorganization plan or pivot to pursuit of a sale to avoid liquidation. How should Penney best position itself at this point for a successful turnaround?

Does a Neiman Marcus and Saks hookup make sense?

Does a Neiman Marcus and Saks hookup make sense?

Mudrick Capital Management, a hedge fund and creditor to Neiman Marcus, has sent a letter to the board asking it to explore a sale to or merger with Saks Fifth Avenue. Does a Neiman Marcus/Saks agreement make sense if it means one or both parties avoid reorganizing under bankruptcy protection?

Neiman Marcus must survive both bankruptcy and COVID-19

Neiman Marcus must survive both bankruptcy and COVID-19

Neiman Marcus’ bankruptcy filing has been directly attributed to exorbitant debt levels. Now the COVID-19 pandemic has dealt the famed luxury chain another major blow. How will COVID-19 impact the luxury space, and what does that mean for Neiman Marcus’ turnaround chances?